The law of increasing opportunity cost results in a constant slope of the production possibilities curve.

Consider a tax cut which affects not only consumer disposable income, but also after-tax earnings from labor supplied to labor markets and from financial assets acquired through saving. In the long run we would expect this tax cut to

A) increase both the price level and the level of real GDP. B) decrease both the price level and increase real GDP. C) increase the price level. D) increase the level of real GDP.

Gerald wants to take out an insurance policy on his Pez dispenser collection, and reports to his insurance company that the collection is worth $25,000. This is an example of using money as a

A. medium of exchange. B. unit of account. C. standard of deferred payment. D. store of value.